Fiat is looking to move production of the Panda to Poland in order to free-up production capacity in Italy to make way for more Alfa Romeo models.
It’s easy to see why FCA might want to move production of the Panda to Poland to make way for more Alfas. The 6,990 euro Panda is a low-price economy car that the majority of consumers won’t care where it’s built, whereas Alfa Romeo benefits from the cache afforded to it by its vehicles being built in Italy. The Panda’s profit margins are also lower, meaning FCA may benefit by moving production to low-wage Poland.
FCA CEO Sergio Marchionne has talked in the past about a two-pronged strategy in regards to European car production. High-priced models with larger profit margins are to be made in Italy, whereas economy cars will be made in countries with cheaper labor. For example, the Alfa Romeo Giulia and Stelvio are built in Italy, whereas the Fiat Tipo is built in Turrkey and the Fiat 500L is built in Serbia. FCA also operated a plant in Poland that builds the Fiat 500.